Watching The Tiger

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Watching The Tiger

Fri, 08/26/2011 - 11:41 — tabs

One has become quiet and watchful since the SP Downgrade of US debt as one would be if one suddenly found oneself in a room with a Bengal Tiger who had a penchant for eating men. The Financial Markets since the downgrade have become IRRATIONAL, with men filled with fear and panic scurrying here and there and in every direction not knowing in which direction to go. Chaos has won as Congress went on vacation, the President to play Golf, the Euro leaders to talk endlessly and Bernanke to find that his bag of tricks has been depleted of tools in which to fix Humpty Dumpty. There has been no real crisis of the sky falling but the perception that there is no one who is responsible nor competent minding the helm of a world economy, headed for that iceberg that lies dead ahead. There has been a crisis of confidence in the leadership of the worlds economies. The world financial markets had in fact gotten to the point of fear and panic where all it would have taken is one good shove to pushed it over the edge into oblivion (week of 8/19) . Where there would have been no backstopping nor calming of the markets.

One has previously postulated that the Great American Post War Prosperity Boom ended in 2008 when President GW Bush went on TV to tell the American people that America was in a financial crisis (btw this was the event that burst Americans illusion that we were a rich nation that could afford every thing without consequence, and that awakening led to the Tea Party). That was the day that America began a convulsive transformation to a new era, that the US has gone through what amounts to the calm period in the eye of a hurricane and that rough waters lie ahead (it is all one big storm since 2008). Now the question is, is this current financial upheaval just a precursor event to a financial Main Event crisis or is this the kind of volatility that we can expect going forward as financial systems become ever more unstable due to excessive Sovereign Debt loads? That this continued financial turbulence will ultimately lead to a Main Event crisis of confidence. Remember one has long said that the crisis of confidence would come long before the last USD was spent, and all it would take is for some Finance Minister to one day wake up and say,"I want out of US Treasuries while the getting is good." That in affect is what has just happened with the Euro debt and banks, the Investors wanted OUT.
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